Essay: Thomson holidays

Thomson Holidays

D E C L A R A T I O N

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1..Identify the problems faced by Thomson, using the following headings:
      Human Resources
      Operations
      Marketing

1. Human Resource: There are there problems Thomson faced in human resource. Firstly, the staff might experience a period of confusion and chaos because of rebranding. People in different brands are not familiar with each other’s work. They need to spend some time and energy to get known the new company combination. Secondly, the increasing staff training cost is a problem. The training will play a more significant role due to the rebranding and expansion of Thomson. People work in different countries need to be trained not only cooperate with other nations but also different industry which is incorporated into Thomson recently. Also we can expect the new round of recruit with the company’s development will cost extra training fee. Thirdly, as mentioned above the number of employees would increase with the expansion of Thomson, and “to be number one” which is considered as the philosophy of Thomson will become more difficult due to the more difficult maintaining staff moral. In addition, the unavoidable cultural shock and conflict in workforce (because the majority of Thomson’s employees work overseas) would also infect the company’s development.
2. Operations: Through the case analysis we can find three problems for Thomson. Firstly, rebranding possibly can bring opportunities for the company, but the risk is hardly to ignore. Rebranding needs money and changes almost all the aspects of an organization, so how to operate it properly is a demanding challenge. Secondly, more extra staffing cost and increasing staff training requirements due to the rebranding and expansion of Thomson. Thirdly, the conflicts and contradictions among new corporative brands need proper correspondence. As we can find some overlap in Thomson, Lunn Poly and Britannia.
3. Marketing: Two marketing issue should be noticed by Thomson. Firstly, the company needs to develop it staff to maintain its image. As a service industry, good image is very important in company’s running especially at the time for Thomson rebranding. Secondly, market segmentation is very important for either old Thomson or new one. Old Thomson declared that it operates to a wide range of resorts offering a variety of holiday types to suit all ages and tastes. Therefore, retaining the existing customers and recruiting new groups are the essential challenges for today’s Thomson which will heavily depend upon specific consumer segmentation.

2. Thomson is a very customer-focused company which aims to provide excellent customer service     at all times.

1. Explain how a business such as Thomson can use marketing as a means to attract new customers and maintain its reputation.
   As the UK’s leading leisure travel retailer, the most significant product for Thomson is its services. So the key of attracting new customers and maintaining its reputation is to provide better services. After good market segmentation, Thomson provides specific travel and relaxing plans for particular groups of customers. This marketing strategy not only satisfies these loyal customers but also could attract more new clients. For example, different prices fit to different economical groups. In this way, leisure travel could offer to different groups of different level of income. Meanwhile, Thomson expands it profits.
2. Define the term ‘market segmentation’ and explain how this would work for a company such as Thomson Holidays.
   Market segmentation according to several references I found is to present different products and/ or different services to different customer groups. Frequently it divides into the geographic, demographic, psychographic and behavioral segmentations.
   From the point of geographic segmentation, , it calls for dividing the market into different geographical units such as nations , regions, states, countries, cities, or even neighborhoods. Thomson Holidays is a world-wide travel retailer and it provides services to the people all around the world. It should notice to separate its customers to different groups according to different countries and regions so that comfort its customers. From the point of demographic segmentation, it divides the market into groups based on variables such as age, gender, family size, family life cycle, income. As a large company with 1/3 UK market, it is sure the aim of Thomson Holiday is to attract all people. So for example, it must consider that some of its services suit men and some are favored by women; some are designed especially for young family travelling and some are catered specifically for retired people. From the point of psychographic segmentation, it divides buyers into different groups based on social class, lifestyle, or personality characteristics. This is easily understood. Because of different economical level, people prefer to different benefits that is a valuable factors for Thomson to design its travel types, for example, price designing. From the point of behavioral segmentation, it divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Some people like the travel shopping in metropolis; others would like to have rest in countryside. That’s why Thomson must project different travel routes for different people.

3. Thomson has diversified into many other business areas. Give two examples of this and explain     the reasons why Thomson may have adopted this strategy.

The two of diversified business areas Thomson developed recent years is its newly cooperated brands Lunn Poly holiday shops and Britannia airlines.

The purpose that company choosing the rebranding strategy is to maximize the brand of Thomson. Just like what Peter Rothwell, Managing Director, TUI UK, said, it want people to have a clear understand that Thomson caters for all their travel needs. This is also the reason of rebranding’ appearance in business activities, “to move the brand up market/ shed its negative image”, and “a successful rebranding projects can yield a brand better off than before”. Thomson Holidays is a division of TUI UK ltd which is a world-class, innovative and customer-focused company. Thomson Holidays as UK’s leading leisure travel retailer with over 750 retail stores, including the award-winning flagship Superstore, Thomson Direct call centre, and Thomson.co.uk where you can book and pay for holidays online. Lunn Poly owns more than 780 holiday shops. Britannia Airways, one of the world’s largest holiday airlines, offering award-winning service on a network of holiday flights from the UK and Europe to holiday destinations around the world. All of the three brands have their own advantages and characteristics. So combining it together thus they can complement each other and maximized their potential competition

4. Managing a company as large as Thomson involves a considerable amount of joint effort on the     part of executive managers, with regular contact across all units.

1. Briefly describe the likely roles and responsibilities of senior management in the operation of a multinational organisation such as Thomson.
   The roles and responsibility of senior management in the operation of a multinational organization should be
   planning, organizing, implementing, directing, controlling and monitoring of company’s operation
   ?managing the personnel of all the company
   ?managing and enriching all external relationship with the governmental and other agencies
   (Extract from:Senior Manager – AKES India Terms of
   http://www.iis.ac.uk/SiteAssets/pdf/Senior%20Manager%20AKES%20India%20TOR.pdf)

   The senior management of Thomson is needed to meet the above requirement. Because of its complex organization including Thomson Holidays, Lunn Poly and Britannia and huge amount of employees who work in overseas, it is difficult for the senior management to operate. What they should do involve the internal and external facts during the business program. For example, it includes both the marketing strategy decision and implementation in the rebranding program and the human resources management in this multinational company during the process.

2. What are the challenges typically faced by an organisation like Thomson in managing its international workforce effectively? Suggest ways in which they could overcome these challenges.
   The challenges typically faces by an organization like Thomson in managing its international workforce are in three aspects. According to “Managing the Global Workforce: Challenged and Strategies” in Academy of Management Executive12, Firstly, staffing is important that means no matter which regions the professional employees we need are. They will be selected and mobilized effectively. Secondly is the fast transmitting of knowledge and creativity no matter where they are created in the organization. Thirdly, it is a challenge to search and explore professional experts in the global area. That is to find a talent who could play an effective role in a multinational company.

   To solve such problems is indeed a very complicated issue. There are several ways that maybe helpful. For example, because majority of employees in Thomson work overseas, it is significant to select the person from British. The process during choosing representatives should be cautious. And then these chosen representatives should be given a special training about this specific exotic culture and language. In addition, it is better to rearrange the process of its selling transport management due to different countries and culture.

BIBLIOGRAPHY:

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2. Available from: Senior Manager – AKES India Terms of
http://www.iis.ac.uk/SiteAssets/pdf/Senior%20Manager%20AKES%20India%20TOR.pdf [Accessed on August 25, 2009]

3. Available from: http://en.wikipedia.org/wiki/Rebranding [Accessed on August 25, 2009]

4. Available from: www.managementhelp.org[Accessed on August 25, 2009]

5. Available from: www.QuickMBA.com [Accessed on August 25, 2009]

6. Roberts K., Kossek E.,& Ozeki C. (1994) “Managing the Global Workforce: Challenges and Strategies” In: Academy of Management Executive12,NO.4 pp.93-106 In: Human Resource Management (9th edition). China: China Renmin University Press